Stocks in focus: Ruchit Jain of 5paisa recommends buying IOC, and DLF today

Stock Market News: The domestic benchmark indices, the Sensex, and the Nifty 50 started off Tuesday's session on a flat note amid mixed global cues. The Sensex fell by 6.57 points, or 0.01%, to 81,349.28, while the Nifty 50 gained just 3.30 points, or 0.01%, to 24,839.40. The broader indexes began trading in a mixed bag.

Tuesday's Asian markets fell, but overnight Wall Street equities remained flat. To validate their bets on a rate cut in September, investors are awaiting comments from the US Federal Reserve and its rate decision, which is expected later this week.

Retail investor enthusiasm and consistent capital flows into mutual funds, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, will maintain the market robust. The high prices are still concerning, especially for the entire market. The current positive trend in the market is the increasing purchase by institutions of high-quality stocks with strong earnings visibility.

Market participants will be closely observing the FOMC meeting on July 31st and the Fed chairman's remarks for any indications of potential rate cut.

Market Review and Outlook - Ruchit Jain

Nifty 50 rallied higher on the back of positive global cues and almost tested the 25,000 mark during the day. However, the index gave up the intraday gains and ended below 24,850 on a flat note.

Nifty 50 has been continuing its uptrend with no signs of trend reversal as of now. The market breadth remains healthy while FIIs have continued to add fresh longs post expiry. However, the RSI readings indicate possibility of some consolidation or a pullback towards support within the uptrend. Hence, there could be some slow and gradual move in the index with stock specific action in the broader market. The immediate term supports for Nifty 50 are placed around 24,620 and 24,500 while resistance as per retracement of recent correction is seen around 25,065 followed by 25,340. Traders are advised to look for stock specific opportunities and continue to trade in the direction of the primary trend.

Stocks in focus today - Ruchit Jain

On stocks in focus on Tuesday, Ruchit Jain recommends buying two stocks - Indian Oil Corporation (IOC), and DLF.

Indian Oil Corporation

The OMC stocks have been consolidating in a range since last few months, which seems to be a time wise corrective phase within a broader uptrend. In this consolidation, the stocks have not breached the important supports and it seems that these stocks could resume the uptrend from here. IOC is on the verge of a breakout and hence, traders can look for buying opportunities here.

It is advisable to buy the stock in the range of ₹180-177 for potential target around ₹189 and 196. The stoploss on long positions should be placed below ₹171.

DLF

The stock has given a breakout from a falling trendline resistance and the RSI too is hinting at a positive momentum. The volumes have started increasing along with the breakout and hence, short term traders can look for buying opportunities. Traders can buy the stock on declines in the range of ₹855-850 for potential target of ₹900-910. The stop loss on long positions should be placed below ₹830.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.